A cross-party group of UK parliamentarians has initiated an inquiry into the country’s crypto and digital assets sector.
The All Party Parliamentary Group (APPG) for UK Crypto and Digital Assets is investigating the necessity for further regulation in the market and is soliciting feedback from various stakeholders within the industry, including crypto operators, regulators, industry experts, and government officials.
Chaired by Dr. Lisa Cameron MP, the group comprises MPs and Lords, including former Digital Minister Lord Vaizey, Treasury Select Committee member Harriett Baldwin MP, and former Secretary of State Matt Hancock MP. It serves as a platform for parliamentarians, policymakers, and the UK crypto sector to discuss regulatory and policy matters.
The inquiry’s scope is broad, encompassing the government’s and regulators’ roles, consumer protection issues, and the potential implementation of central bank digital currencies.
This inquiry coincides with heightened scrutiny of the UK crypto and digital asset sector. Earlier this year, HM Treasury announced its intention to establish the UK as a global hub for crypto investment, aiming to attract crypto firms and enhance the nation’s technology and fintech industries. According to research conducted by HMRC in July 2022, 10% of UK adults reported having held or currently holding a crypto asset, an increase from 5.7% in January 2021, as per Financial Conduct Authority data.
Cameron remarked, “We are at a critical juncture for the sector as global policymakers reassess their approaches to crypto and its regulation. It is crucial that the UK maintains its momentum and that government and regulators uphold their commitments regarding crypto and digital assets.”
CryptoUK, the UK’s independent trade association representing over 100 members from the crypto sector, expressed support for the inquiry.
Ian Taylor, executive director of CryptoUK, stated, “The UK crypto sector acknowledges the importance of a well-regulated environment and advocates for regulations that provide business certainty while fostering a vibrant market. We seek a balanced regulatory approach that prioritizes consumer protection alongside innovation and growth.”
The inquiry is launched in conjunction with the formation of two legal taskforces aimed at examining the legislative changes necessary for the issuance and transfer of digital securities on blockchain and DLT systems, as well as under English private law. Both taskforces seek to propose legal reforms to ensure the recognition and protection of digital assets.